New Delhi: The Centre is weighing a proposal to merge state-owned power sector financier Power Finance Corporation (PFC) with its subsidiary REC as part of a broader restructuring exercise, reports said.
A roadmap for the proposed amalgamation is expected to be outlined soon, with a decision likely in the near term. However, reports said that certain procedural requirements will need to be completed before the proposal is placed before the Cabinet for approval. The source added that the merged entity will operate under one of the existing names, with no plan to create a new institution.
The move is intended to generate operational and financial synergies between the two organisations. While REC, earlier known as the Rural Electrification Corporation, was initially tasked with supporting rural electrification, its mandate has expanded over time. As a result, its current functions significantly overlap with those of PFC.
Given the increasing convergence in their roles and activities, the government is considering consolidating the two lenders under a single identity to streamline operations and improve efficiency, reports said.
